Oct 21, 2009 (LBO) – Sri Lankan mini hydro power company Vallibel Power Erathna said it has bought a firm that has approvals for two power plants and deals to sell electricity to the state utility. Vallibel Power, which is being eyed by a US investor, said in a stock exchange filing that it has acquired all 16 million shares of Country Energy (Pvt) Ltd for 200 million rupees.
Country Energy currently has all statutory approvals for two hydro power plants; the Denawaka Ganga Hydro Power Project with an approved capacity of 4.9MW and the Kiriwaneliya Hydro Power Project with an approved capacity of 3.8MW.
The plants are located in the Ratnapura and Nuwara Eliya districts in the central hills.
Country Energy also has Standardized Power Purchase Agreements with the Ceylon Electricity Board for both projects.
“Country Energy has already incurred preliminary expenses for site clearing and internal road construction at the project sites,” the statement said.
It said the Denawaka Ganga Project has the potential for 7.2MW and the Kiriwaneliya Project has the potential for 4.95MW.
“Country Energy is now in the process of obtaining statutory approvals for the higher capacity,